Trust Fund Plan
Definition of "Trust fund plan"
One of two basic types of funding instruments for pensions or employee benefits, in which responsibility for plan assets is vested in a trustee. The other type is known as an insured plan, whose assets are held by a life insurance company, typically under a group annuity contract that guarantees payment of benefits. A combination plan makes use of both approaches, with some contributions going to a trustee and the remainder to an insurance company.
Popular Insurance Terms
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Exchange of a new policy for one already in force. ...
Transfer of high severity risks through the insurance contract to protect against catastrophic occurrences. While insurance is generally not the most cost-effective means of recovery of ...
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Means of providing insurance protection for the property of a business that is not at a fixed location. ...
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Ratio of authorized control level risk-based capital of an insurance company to its total adjusted capital. This statistic determines regulatory action taken by the state's insurance ...
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